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Gadgets Research in Motion Outlines Global Expansion of BlackBerry
Michael Barkoviak - July 20, 2008 2:52 PM

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15 comment(s) - last by spluurfg.. on Jul 22 at 7:21 AM

Research in Motion recently outlined its plans on how to better launch BlackBerry smartphones on the international market

Research in Motion (RIM), maker of the BlackBerry, plans to develop new phone models and software so it can be more competitive in the global marketplace.

"We're not short of opportunity," said RIM CEO Jim Balsillie. "We're in a prime, prime position that I think we've navigated ourselves to and earned."

While RIM dominates the corporate workplace, it has transitioned to add a digital camera, video recorder, and other more consumer centric features into some of its latest handsets. Its stronger emphasis has led to 40 percent of customers now either regular consumers or small and medium businesses, RIM said.

Already available in 140 nations, RIM plans to put a stronger emphasis on Russia, China, Latin America and Southeast Asia, but did not mention how it will do this.

Even though RIM has successfully expanded across North America and the rest of the world, financial analysts are worried RIM will not be able to sustain the growth, especially due to the weakening economy in the United States. RIM recently posted a profit outlook that was good for most companies, but did not meet analyst expectations.

It marked the first time in several quarters RIM did not meet analyst expectations, and now analysts have downgraded their forecast for RIM in the next quarter. Gartner estimates RIM has 42 percent control of the U.S. smartphone market, with Apple trailing with 20 percent, and other makers combining to take up the remaining 38 percent of the market.

Although RIM and Apple are locked in an intense battle as the companies pit their BlackBerry Bold 9000 and iPhone 3G against one another. In the future, RIM will continue to launch and promote its BlackBerry Bold as a possible iPhone killer.

It wasn't long ago that third-party companies making programs for cell phones steered clear of RIM's BlackBerry lines dude to their place as a corporate workhorse, but as more end users begin to use phones such as the Curve 8330, companies have stepped in to help add third-party applications. For example, Zumboi had a partnership with Microsoft to offer its widget application for the Windows Mobile platform only, but has recently branched out and started service for BlackBerry Pearl and Curve owners.

Also, there are more third-party BlackBerry applications available for owners to purchase online, when just a few years ago users had to search hard for similar programs for their phones.

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Whats Significant Market Share?

By mondo1234 on 7/20/2008 3:29:37 PM , Rating: 2

quote:
Gartner estimates RIM has 42 percent control of the U.S. smartphone market, with Apple trailing with 20 percent

Steve Balmer says "the iPhone has no chance of gaining significant market share"

My guess is, that 20% in the first year is significant.
Thanks DT for posting that at the bottom of the page.
I almost forgot...

RE: Whats Significant Market Share?

By spluurfg on 7/20/2008 4:04:46 PM , Rating: 4

quote:
Steve Balmer says "the iPhone has no chance of gaining significant market share"

It depends on your definition of smartphone. IMO (and the rest of the business world probably agrees with me), a minimum function of a smartphone is to do either blackberry connect or MS exchange email.

Even though the new 3g iphone can use ms exchange, I think it will be at least a couple iphone generations until business users are ready to adopt a touchscreen keyboard. I've only had a meeting with one businessperson who had an iphone, and he didn't know how to silence it. Treos have a physical switch dedicated to enabling meeting mode, to give you an idea of how business oriented these devices are.

Anyway my point is that it is not that sensible to categorize blackberries and iphones in the same market, since there is relatively little consumer overlap.

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RE: Whats Significant Market Share?

By dagamer34 on 7/20/2008 4:40:10 PM , Rating: 2

That's just the case of a business person not bothering to look at the manual. There's a freaking switch on the iPhone for silencing sounds!

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RE: Whats Significant Market Share?

By Clauzii on 7/21/2008 3:08:43 AM , Rating: 2

LOL, Yes indeed another RTFM!

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RE: Whats Significant Market Share?

By spluurfg on 7/21/2008 5:02:43 AM , Rating: 2

Hehe, well I should email the guy then. In full disclosure I have not owned either a BB or Iphone nor had serious time on either device, so I frankly wouldn't be able to offer more than what I've heard from users.

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RE: Whats Significant Market Share?

By robinthakur on 7/21/2008 12:02:28 PM , Rating: 2

Whilst I commend you in owning up to not knowing, the fact that you spewed FUD in the first place really invalidates any future opinions you might have. I have lots of meetings with people who choose to bring Macbook pros, MBA's and iPhones so perhaps your users are not typical ones

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RE: Whats Significant Market Share?

By spluurfg on 7/22/2008 7:21:50 AM , Rating: 3

Spewing FUD? I think it's pretty obvious that my comment was my personal opinion [predicated by 'I think'] and anecdotal in nature. But please let me know which of...

[1] In my opinion a smartphone should be able to do msexchange/blackberry connect
[2] I think business users want phsyical keyboards
[3] I only met one iphone business user, who didn't know how to use his device
[4] Treos have a dedicated silence switch
[5] It doesn't make sense to lump consumer and business markets together due to limited overlap

...constitutes spewing FUD.

With regard to the business users I see, they are usually in the private placement departments of investment banks or investment professionals and managers of alternative investment firms. The lone iphone user in question was a partner in a firm with approximately €3bn in AUM. He had made it clear that he had just gotten it. So no, I suppose they are not typical ones.

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RE: Whats Significant Market Share?

By ksherman on 7/20/2008 7:10:44 PM , Rating: 2

Except that RIM is also trying to market their phones towards the general public as well, with the Curve and Pearl leading the way.

Having moved from a BB Pearl to the iPhone 3G, I can say that in almost every way, the iPhone 3G is superior. The two biggies are the lack of a physical keyboard and the email capabilities of the BB far surpasses the iPhone 3G.

To the keyboard, I have really gotten quite used to it, only because of Apple's software that automatically corrects for misspelled words (from hitting the wrong key, etc), and the fact that it has started picking up 'my' words as well (broasted, blazes, prolly instead of probably etc...). I think for some, having a physical keyboard is a biggies for others they can get used to it, for some they love it and can't imagine anything else. I will say, it is NICE having such a large screen, since a keyboard is not necessarily 100% in use.

As for email, it generally works great on the iPhone, though the interface Apple has disigned for the mail box is annoying. To get a message from another inbox, you have to hit a total of 6-8 options to move back to view all the boxes and then back into another box. I am sure that will someday be refined. Also, Exchange support isn't there yet. All they added was support if your business uses ActiveSync, otherwise (AFAIK) your out of luck. My BB was incredibly easy to add accounts too and had no problems with any account I threw at it (even my School's, which hardly even works right on my computer, apart from the OWA).

Well, I think that the iPhone can certainly gain significant market share. It already has. It will continue to grow, especially as more and more consumers are dropping their 'regular' phones for devices with a little more capability. Always a good thing :)

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RE: Whats Significant Market Share?

By mondo1234 on 7/20/2008 10:28:43 PM , Rating: 2

Agreed. Is this a "If your coming onto my turf, I am going onto yours"? Taking into consideration that Apple was in the General (or Entertainment) area to start with and is moving into the corporate arena is easier than Rim (in the corporate area) to move into the Iphone area as an entertainment device. Now, I really like the BB line, but to be honest, when I see someone carrying one, I think "Business on a leash". With the Iphone, I see "extra money to burn, and are having fun with it".

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RE: Whats Significant Market Share?

By spluurfg on 7/21/2008 5:06:20 AM , Rating: 2

I have no doubt that both RIM and Apple will compete with one anothe both in business and consumer markets, I just think that it makes most sense to break down the smartphone market into consumer purchases and business purchases. It might be 40% BB and 20% apple right now for US Smartphones, but to make up some arbitrary figures, it could be 85%/5%Blackberry/Apple for business purchases and 5%/85% for consumer smartphones, just based on the relative sizes of the markets.

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RE: Whats Significant Market Share?

By Master Kenobi

(blog) on 7/21/2008 8:19:45 AM , Rating: 2

AFAIK the quoted 20% and 40% are the regular joe blow consumer market. If you bring the corporate market into the picture, RIM's marketshare increases to something like 70%.

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RE: Whats Significant Market Share?

By ksherman on 7/21/2008 10:55:10 AM , Rating: 2

And rightfully so.

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RE: Whats Significant Market Share?

By robinthakur on 7/21/2008 12:05:29 PM , Rating: 2

Agreed, other than some company guys who carry also an iPhone to look flash in meetings, everybody still has a Blackberry that they do all their corporate messaging on. Thanks to blackberry, I can now get messages at home sent to me while I'm sleeping!

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RE: Whats Significant Market Share?

By JustTom on 7/21/2008 11:57:02 AM , Rating: 2

Of course if you read the whole quote it is obvious that Balmer, please his chair throwing heart, was talking about the entire cell phone market not just smartphones.

quote:
Now we'll get a chance to go through this again in phones and music players. There's no chance that the iPhone is going to get any significant market share. No chance. It's a $500 subsidized item. They may make a lot of money. But if you actually take a look at the 1.3 billion phones that get sold, I'd prefer to have our software in 60% or 70% or 80% of them, than I would to have 2% or 3%, which is what Apple might get.

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RE: Whats Significant Market Share?

By robinthakur on 7/21/2008 12:13:10 PM , Rating: 2

If I were I shareholder in MS I'd worry that somebody so out of touch with the consumer market is now in charge of it. Apple proved him wrong in every way and I still don't see the awful Windows Mobile on 80% of devices out there. Thank God! Most people try them and then realise that they just aren't designed as phones first and foremost. My HTC Tytn was horrible as a phone but not bad as an organiser, despite the fact that keys on the keyboard had very varying sensitivity and unpredictabcle results!

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